California Centers

MAY 2018

California Centers Magazine serves retailers, developers, shopping center owners, investment sales brokers and tenant representation firms throughout the state of California.

Issue link: https://californiacenters.epubxp.com/i/979799

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30 California Centers Magazine | May 2018 C C with vibrant-looking vegetables, tur- meric lattes with phrases written in the spice and charcoal-infused any- thing can look great online, but Boo- ty warns that some of today's hottest food and fashion concepts can be just a flash in the pan. "That said, certain trends can be fleeting," he notes. "Owners must evaluate potential retail tenants com- prehensively to determine the poten- tial for long-term success at a loca- tion." FROM ONLINE TO IN-STORE Sandy Sigal, president and CEO of NewMark Merrill in the Los An- geles submarket of Woodland Hills, believes the ever-evolving retail en- vironment, led by preferences from the younger generations, may create a fundamental change in leasing go- ing forward. "The idea that tenants will be long- term — 10 years or more — will be- come more of an anomaly," he says. "Space will evolve and concepts will circle in and out and evolve as well, so flexibility is very important." The introduction of shorter-term concepts, whether that's temporary art installations, mobile photo walls, pop-up spaces or briefer lease lengths, plays to this generation's need for the new, novel, now. It also provides a more realistic length of time for shop- ping center owners or retailers to cap- italize on the next hottest movement. "Gen Z wants to identify and be associated with hip, trendy brand experiences, posting from places one 'wants to be seen," Lyon notes. "Therefore, the consideration of hip brands should become part of a de- veloper 's leasing strategy." Younger Gen Z members may have expressed a desire to visit brick-and- mortar shopping centers, but that doesn't mean they aren't doing most of their research and discovery on- line. Santa Monica-based Mediakix, which creates custom influencer cam- paigns for target audiences, notes that 85 percent of Gen Z will learn about a product through social media. A full 69 percent will make their way into a brand's brick-and-mortar store based on that retailer 's social media posts. Aside from bringing in trendy ten- ants and a mix of new and rotating of- ferings, Sigal believes shopping cen- ter owners can foster a connection to Gen Z by entering their social media space. "If you can make the shopping ex- perience seamless so that marketing content shows up where Gen Z'ers frequent — Facebook, Twitter, Insta- gram, Snapchat, etc., and if you can reach them and give them a reason to come and see and experience more — they will come," he argues. "But the shopping cycle might start with an online purchase that then gets culti- vated to an in-store connection. This A shopping center's public spaces offer an opportunity for Gen Z to enjoy a comfortable, relaxed environment away from their homes and the prying eyes of parents. Gen Z wants to be associated with places that are hip and trendy, where people "want to be seen."

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